Asia Pacific Journal of Business Review

  • 제2권2호
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  • Pages.17-44
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  • 2018
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  • 2466-0043(pISSN)
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  • 2508-4488(eISSN)
경희대학교 경영연구원 (Kyung Hee University Management Research Institute)
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The Effects of SOX and Internal Control Weaknesses on the Relation between the Real Earnings Management and Audit Fees

  • 투고 : 2017.08.11
  • 심사 : 2017.12.05
  • 발행 : 2018.02.28
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초록

This study investigates whether the positive relation between the real earnings management (REM) and audit fees reported by Choi et al. (2016) differs before and after the Sarbanes-Oxley Act (SOX), and varies cross-sectionally depending on the existence of internal control problems. Using a large sample of U.S. firms, we find that the positive relation between REM and audit fees is stronger than the same relation between AEM and audit fees in the post-SOX period, whereas the opposite is true in the pre-SOX period. We also find that the positive relation between REM and audit fees is intensified for firms with material internal control weaknesses.

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참고문헌

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